Michael Kors report second quarter retail sales increase

Michael Kors reports retail sales in the latest quarter rose 7.5% from a year earlier to $532.8 million. Michael Kors opened 116 new stores in the past 12 months, bringing its total to 589 locations around the world. Excluding store openings and closings, retail sales fell 8.5%.

Michael Kors Chief Executive John Idol said sales were hurt by a trend toward purchasing smaller handbags, such as cross-body satchels that are less expensive. Mr. Idol also said the company’s watch business had suffered and fewer shoppers were going to stores, in part due to a falloff in tourists visiting the U.S. in the face of a strong greenback.

“We believe that the handbag market in North America is, again, growing at low single digit,” Mr. Idol said, “but very, very high numbers in terms of units.”

Michael Kors store SoHo, New York